407 Roosevelt Ave NE

Bowbells, ND 58721

$109,900C

3 bd · 2.0 ba · 1,178 sqft · Built 1952 · SingleFamily · Pending · 21 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,102/mo
• Mortgage (P&I): −$576
• Tax + insurance: −$183
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $111/mo
• Annual: $1,335/yr
• Cap rate: 7.51%
• Cash-on-cash: 4.34%
• DSCR: 1.19
• 1% rule: 1.00%
• Cash to close: $30,772

Investor read

• This is a 3-bed/2.0-bath single-family listed at $110k. Condition is rated good.
• At list price, monthly cash flow is $111 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).
• It's been on market 21 days — a 2% lower offer ($108k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $108k (1.5% below list) — sets the bar for market timing.
• In year one you build about $4k of equity ($760 loan paydown + $3k appreciation (3.0% local appreciation)).
• Location reads 68/100 on livability (#115 in ND) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+; Watch: health & safety D, amenities F, commute F.
• Bowbells 14 (rural): math 30% / reading 40% proficiency, ranked #124 of 169 in ND (top 73%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 15% free/reduced lunch — higher-income household profile.
• Zoned schools: Bowbells Elementary School (math 10% / reading 30%, grade F, #220 of 236 statewide, top 94%, 49 students, 22% FRL); Bowbells High School (math 75% / reading 75%, grade A-, #1 of 144 statewide, top 1%, 41 students, 22% FRL).
• Zoned-school proficiency averages 48% at this address vs 35% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Bowbells 14 average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 3 active listings in the ZIP; 3 units permitted in Burke County in 2024 (0 in 5+ unit buildings).
• Burke County population projected at +80% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $31k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$30k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.